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#3106 |
Fish are scared of me
Join Date: Nov 2001
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Posts: 40,672
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#3107 |
It was not a fair catch
Join Date: Aug 2012
Location: Correcting papers
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Please explain to me what it meant when China devalued their currency.
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Posts: 37,442
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#3108 |
Fish are scared of me
Join Date: Nov 2001
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Posts: 40,672
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#3109 |
He's Mahomie!
Join Date: Aug 2001
Location: Jax, FL
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Posts: 17,387
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#3110 |
MVP
Join Date: Jan 2007
Location: Missouri
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This one was a beef plant. Somewhere around ~6000hd/day capacity and generally ran around 5k/day I believe. Probably a couple thousand employees, which sucks, but if the market doesn't shrug it off it'll probably serve a good ****ing to me in the short term.
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Posts: 8,546
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#3111 |
Mod Team
Join Date: Sep 2011
Location: Valley of the hot as ****
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Posts: 45,969
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#3112 |
Kind of a mod
Join Date: Aug 2005
Location: Donkey Land
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To take that a bit further, China is weird because they don't have a free economy, so they can literally determine what the currency's value is. They do it because it makes pretty much everything they export cheaper to outsiders.
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Posts: 52,172
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#3113 | |
Supporter
Join Date: Feb 2005
Location: Olathe, Ks
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Quote:
If China would just agree to quit stealing our IP things would probably go back to the way they were for the most part. |
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Posts: 129,145
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#3114 |
Supporter
Join Date: Apr 2007
Location: Scott City KS
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Posts: 57,467
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#3115 | |
Why so serious?
Join Date: Dec 2016
Location: Chicago
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Quote:
Last week, because Trump decided to threaten 10% tariffs on a further 300bn of important (nb: these are the *really* important consumer goods that will be felt much more by all of us), China basically said, "Look, we're gonna be relaxed about where the CNY ends up fixing. We no longer view 7 as a line in the sand and will no longer buy CNY to keep it below that level." So, they allowed it to cross 7. This has two important implications: 1/ It's clearly an escalation on their side in response to Trump's actions. If one had been hoping for a calming of tensions, this pushed in the opposite direction. 2/ In simple economics terms, China becomes more competitive and exports deflation globally. Hope this marginally helps. |
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Posts: 12,546
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#3116 | ||
Mod Team
Join Date: Sep 2011
Location: Valley of the hot as ****
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Quote:
Quote:
Thanks in advance. |
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Posts: 45,969
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#3117 |
Supporter
Join Date: Feb 2005
Location: Olathe, Ks
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Trump removed certain items, including cell phones, from the tariff list this morning. Market up 500+
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Posts: 129,145
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#3118 |
MVP
Join Date: Dec 2008
Location: Joplin, MO
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When China devalues their currency does our national debt load slow just a little? I know they own a decent portion of it.
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Posts: 7,247
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#3119 |
Mod Team
Join Date: Sep 2011
Location: Valley of the hot as ****
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I bought SPY yesterday when it bounced off its 200 day moving average twice in one week.
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Posts: 45,969
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#3120 | |
Why so serious?
Join Date: Dec 2016
Location: Chicago
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Quote:
You're correct that they own a large amount of Treasuries, and you're correct that what they do with their currency has implications for their holdings of Treasuries. But that doesn't directly affect our national debt at all. It's just a transfer from their holdings to those of other investors (or vice versa). Earlier I mentioned that China is trying to control capital outflows and thus was buying their currency. When they do that, they're selling dollars. And typically they get the dollars to sell by selling Treasury securities. By letting their currency depreciate (devalue), they actually need to sell fewer dollars and thus fewer Treasury securities. (My profession by the way is trading interest rates and fixed income markets like Treasuries.) |
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Posts: 12,546
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